National Grid (Facebook)
National Grid has announced they are planning to request a reduction in its pending natural gas distribution rate proposal with the Massachusetts Department of Public Utilities.
When federal tax reform legislation was signed into law in late December, the company began assessing how reductions in corporate tax rates could benefit customers. The company announced today it will update its rate proposal with the DPU for natural gas rates that will go into effect in October 2018. This will reduce the original $87 million request to an estimated $51 million, a savings of about $36 million.
In a press release, Cordi O’Hara, President and COO of National Grid in Massachusetts said, “We are committed to ensuring that the tax savings of the legislation are fully realized and are used to help our customers in their energy bills. We’ll continue to seek opportunities to provide this benefit to all of our customers.”
The company says that they adjust their base distribution prices depending on the cost of investments in distribution, operation, and maintenance costs. November 2017 was the first time since 2009 that National Grid has filed a rate case to update natural gas distribution prices to support significant investments in the system that serves the heating and cooking needs of their 908,000 Massachusetts customers.
The company has not yet been able to calculate the impact it will have on individual households and businesses yet, but the reduction is expected to result in smaller bills than originally planned depending on customer usage.
In addition to customers in Massachusetts, the new tax law will benefit National Grid customers in Rhode Island and New York.